Corporate Strategy Implementation through Strategic Projects
Kaukiainen, Anu (2019)
Kaukiainen, Anu
2019
Tuotantotalouden DI-ohjelma - Degree Programme in Industrial Engineering and Management
Tekniikan ja luonnontieteiden tiedekunta - Faculty of Engineering and Natural Sciences
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Hyväksymispäivämäärä
2019-08-01
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-201906282344
https://urn.fi/URN:NBN:fi:tuni-201906282344
Tiivistelmä
The consumer goods industry changes quickly, and corporations need to keep up with the speed of change, especially in implementing new strategic directions. According to previous literature, projects and programs are flexible ways of implementing strategies. However, practical management systems, monitoring, and roles and responsibilities are not studied in the consumer goods industry. Fast changing business environment and often complex organizational structures make consumer goods industry an interesting field to study. The flexible ways of working in strategic management are not broadly implemented in the industry, which makes the study relevant.
The case company has evolved from a holding company to an integrated consumer goods company in approximately a decade, which has caused confusion, misalignment of objectives, and lack of information flow about strategy implementation. Corporate strategy implementation has been only top management’s responsibility, and corporate strategy and its implementation process are not visible to lower-level managers and employees. To face external challenges, the case company has organized more cross competence strategic projects, but there is no systematic way of managing them. The biggest problem for the case company is how to manage corporate strategy and its implementation in the new internal environment. Therefore, there is a need to study in the consumer goods context: 1) How can corporate management best lead and monitor implementation of corporate strategy? and 2) How should corporate management lead their strategic projects to deliver strategic changes efficiently?
An empirical study, including interviews inside the case company, a workshop and benchmark interviews, was done to examine strategy implementation and project management in the case company compared to literature frameworks. Based on the literature, results were categorized into issues related to corporate management, strategy implementation, strategic project management and portfolio management. The development plan for the case company was created by analyzing case company-specific problems inside the literature categories and then finding solutions for them based on benchmarks, internal recommendations and literature.
Based on the empirical study and the literature review, the case company should support more flexible and networked ways of working in strategy implementation. That requires defined strategic objectives, cross functional structure, and a new mindset in the organization. To deliver strategic changes efficiently, the case company needs to align targets on every level, give attention to strategic projects, engage more people in strategic planning, monitor strategic projects, manage project portfolios and do change management. Structure and monitoring bring more systematic ways of working and focus attention on managing the strategic projects. Through transparent communication, the case company can get all the employees to work towards common goals. Findings had similarities to previous literature, but elements of strategy implementation through strategic project management had different emphasis. In general, it was found that employees need to be engaged to strategy work, then plan the strategic content, and based on the strategy the management systems can be formed. This study leaves further research opportunities, for example how to align strategic targets throughout the complex organization.
The case company has evolved from a holding company to an integrated consumer goods company in approximately a decade, which has caused confusion, misalignment of objectives, and lack of information flow about strategy implementation. Corporate strategy implementation has been only top management’s responsibility, and corporate strategy and its implementation process are not visible to lower-level managers and employees. To face external challenges, the case company has organized more cross competence strategic projects, but there is no systematic way of managing them. The biggest problem for the case company is how to manage corporate strategy and its implementation in the new internal environment. Therefore, there is a need to study in the consumer goods context: 1) How can corporate management best lead and monitor implementation of corporate strategy? and 2) How should corporate management lead their strategic projects to deliver strategic changes efficiently?
An empirical study, including interviews inside the case company, a workshop and benchmark interviews, was done to examine strategy implementation and project management in the case company compared to literature frameworks. Based on the literature, results were categorized into issues related to corporate management, strategy implementation, strategic project management and portfolio management. The development plan for the case company was created by analyzing case company-specific problems inside the literature categories and then finding solutions for them based on benchmarks, internal recommendations and literature.
Based on the empirical study and the literature review, the case company should support more flexible and networked ways of working in strategy implementation. That requires defined strategic objectives, cross functional structure, and a new mindset in the organization. To deliver strategic changes efficiently, the case company needs to align targets on every level, give attention to strategic projects, engage more people in strategic planning, monitor strategic projects, manage project portfolios and do change management. Structure and monitoring bring more systematic ways of working and focus attention on managing the strategic projects. Through transparent communication, the case company can get all the employees to work towards common goals. Findings had similarities to previous literature, but elements of strategy implementation through strategic project management had different emphasis. In general, it was found that employees need to be engaged to strategy work, then plan the strategic content, and based on the strategy the management systems can be formed. This study leaves further research opportunities, for example how to align strategic targets throughout the complex organization.